Many businesses and customers are adopting tap-to-pay solutions for their numerous benefits. These systems offer a convenient, quick, and hygienic alternative to paying for purchases. They are also secure compared to most traditional payment methods.
But just like any other tech innovation, contactless payment solutions pose some possible challenges to businesses. Here’s a look at 6 tap-to-pay problems your business should watch out for
1. Technology barriers
Many of today’s shoppers are of the older generation. This group might not find it easy to navigate some functions of modern tech devices. That means if you have such a customer at the cashier, they may require some help or training on how to activate and use the NFC feature in their phone. This will cause delays in serving other consumers on the line. Delays and snarl-ups will contribute to a negative customer experience.
2. Security issues
Tap-to-pay solutions are among the secure modes of paying for goods available. Furthermore, tech companies are constantly improving and coming up with upgraded security features. But it’s important to note that cyber attackers are also coming up with newer methods to infiltrate technology and steal data.
For instance, there are concerns that criminals can design fake scanners to intercept NFC and steal customer data. This means the solutions are not completely risk-proof. Also, since contactless cards can transact without PIN authorization, if a user’s card is lost, it can be used to make fraudulent purchases. Some customers keep off the technology for fear of falling victim to frauds.
3. Low transaction limit
Due to security fears, contactless payment options have the lowest daily spending limit. This means customers can’t use them to pay for large purchases. It’s also impossible to tap-to-pay if using a smartphone whose battery is low. This can mean a lost opportunity for businesses if the customer didn’t carry any other mode of payment.
4. Network failure
Technology can fail at a time when you urgently need it. And this is one problem that businesses eyeing tap-to-pay solutions must be prepared for. Contactless payments require proper internet connectivity to complete a transaction. There needs to be communication between the customer’s device and their card provider’s servers for payment to go through.
If the network on either end fails, payment won’t occur. Unfortunately, network issues can be a problem beyond the business itself since there are third parties involved in ensuring a successful transaction using tap-to-pay solutions.
5. Card clash
Card clash arises when customers carry more than one active contactless payment solution nearby. It’s possible for each solution to be charged and it becomes confusing for the business to sort out such transactions. The staff will end up spending a lot of time sorting out duplicate transactions. This scenario beats some major benefits of contactless payment solutions, i.e speed, and convenience.
6. Most consumers aren’t yet using the method
Due to challenges such as technological barriers, fraud, and security issues mentioned above, contactless payment methods have received some level of resistance among consumers. The concerns have brought doubt in most customers making it challenging for businesses to fully rely on these payment methods only.
The fintech industry continues to grow and innovate solutions that match consumer trends and needs. Even with the said problems, tap-to-go payment methods are timely solutions that any business should consider. In any case, having several options to receive pay helps your business to cater to the needs of different shoppers. This makes your business attractive to more buyers.
Guest article written by: William Powell is a writer, and educator who likes to cover marketing and fintech. He enjoys learning about the latest business trends and analyzing how global events impact domestic and international economies.